The Bureau of Internal Revenue (BIR) has issued Revenue Regulation No. 011-2025, requiring e-commerce businesses and other specified taxpayers to implement electronic invoicing and electronic sales reporting systems.
The move, aimed at enhancing tax compliance and efficiency, aligns with sections 237 and 237-A of the National Internal Revenue Code of 1997, as amended by the Create More Act.
The new regulation mandates that taxpayers engaged in e-commerce must issue e-invoices in a structured data format, facilitating electronic extraction and transmission to the BIR.
The BIR defines “taxpayers engaged in e-commerce” broadly, encompassing:
- Online sales of physical and digital goods, services, and content.
- Operation of digital platforms and marketplaces.
- Digital content creation and streaming.
- E-retailing and provision of on-demand services (e.g., ride-sharing, food delivery).
- Online sales of creative, professional, and freelance services.
- Transport and delivery services through digital platforms.
Beyond e-commerce, RR 011-2025 extends e-invoicing and sales reporting requirements to:
- Large Taxpayers and those under the Large Taxpayers Service.
- Taxpayers using Computerized Accounting Systems (CAS) and Computerized Books of Accounts (CBA).
- Exporters of goods and services.
- Registered business enterprises availing of tax incentives.
- Taxpayers using Point-of-Sales (POS) systems.
- Other taxpayers as determined by the Commissioner.
These taxpayers will be required to electronically report sales data once the BIR establishes its data storage and processing system, with further details to be released in a separate regulation. Compliance will extend to all branch offices of covered taxpayers.
To ease the transition, the BIR offers tax incentives:
- Micro and small taxpayers receive a 100% additional allowable deduction for the cost of setting up an electronic sales reporting system.
- Medium and large taxpayers receive a 50% deduction.
- This deduction is available once within the taxable year of system completion or final payment.
- Importation of these systems are tax exempt.
Micro taxpayers are exempt from mandatory e-invoicing but may opt in voluntarily. They can continue using registered manual invoices or CAS, CRM, and POS systems.
Taxpayers have one year from the regulation’s effectivity date to comply with e-invoicing requirements. The BIR said penalties will be imposed for non-compliance.
Meanwhile, BIR commissioner Romeo D. Lumagui Jr. has issued a directive to all Revenue District Offices (RDOs) to upgrade their respective eLounges and ensure that dedicated personnel are available to assist taxpayers utilizing the eLounge services.
This mandate is outlined in Revenue Memorandum Order No. 39-2024 (RMO No. 39-2024) and aims to streamline tax compliance while accommodating the growing demand for the BIR’s digital services.
“I will personally oversee the improvements made to the eLounges in each RDO to ensure they meet the standards set in this order,” Lumagui emphasized.
“Furthermore, I will ensure that the necessary revenue personnel are deployed to assist taxpayers who are using the eLounge. The BIR remains committed to facilitating easier tax compliance for all taxpayers, whether they access our services in person or online.”
The eLounge facilities are available for use at no charge, allowing taxpayers to access a variety of BIR eServices, including registration applications, updates to registration details, filing of tax returns, submission of required reports and attachments, and other tax-related transactions.
However, a P150.00 convenience fee will apply to each transaction involving the filing of ONETT applications through the eONETT system.
At each eLounge, at least three trained and knowledgeable personnel will be available to assist taxpayers with using the BIR’s eServices.
The eLounges are open from 8:00 AM to 5:00 PM, with extended hours possible based on taxpayer demand and subject to approval by the Revenue District Officer.
